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What is hired purchasing?
Hire purchase is an agreement between the owner of goods, called Hiree and the user of the goods, called Hirer where the Hiree deliver the goods to the Hirer but the ownership of the goods remains with the Hiree. The Hirer makes the periodical payments of hire charges which are partly against the capital repayment and partly against the interest payable. After the full hire charges are paid by hirer, he gets an option of purchasing the asset and the ownership of the asset is transferred to the hirer. If the hirer fails to pay any installment, hiree can take the possession of the asset without refunding any installment paid earlier.
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